Governance is a tricky subject for all companies, and so are governance trends. With new laws like GDPR coming into effect, leaders are vying to get the latest updates. In this article at Forbes, Michael Peregrine discusses 10 governance trends that you are likely to experience in 2019.
A lot of things impact an enterprise’s operations. Proper governance can cushion the blow of the majority of the losses by proactively addressing issues on time. Following are the governance trends in 2019:
Tackling Business Volatility Yet Again: The market is volatile again, so leaders will expect that to reflect in their business as well, just like 2017. A special board should be set up along with better management policies.
Promoting Organizational Social Initiatives: One of the governance trends is the rise of social initiatives within the organization. Some of them will align with company objectives while others would incline towards personal political agendas. Leaders must filter out what is unnecessary.
Gender Diversity: Diversity in the workplace has taken a center stage. Also, organizations must be careful around such sensitive issues. An organization’s governance body must address gender equality through equal pay and safety.
The Politicization of Corporate Governance: Corporate governance could become mainstream in the upcoming 2020 election. For example, Senator Elizabeth Warren might again advocate decentralization of large enterprises.
Becoming Technical: Wall Street Journal suggested every company must convert to a technology-based firm. One of the governance trends is to find out how technical the company leaders would like to be.
Concerns Regarding Personal Liability: The Department of Justice’s enforcement policies have emphasized personal liability. Leaders might avoid taking risks altogether for fear of corporate failures and resultant reputation loss.
Social Responsibility: Millennial customers require their brands to be supportive of social causes. The governance board should keep that in mind as well as cater to stakeholder interests in the company objectives.
Monitoring Organizational Culture: It has been suggested that gaps in the maintenance of corporate decorum have given rise to unlawful activities within companies. One of the governance trends is monitoring corporate culture and applying incentives to promote behaviors aligned with company ethics.
Maturing of Conflict Resolution: Since diversity is commonplace in companies today, directors must understand how to react to prevent conflicts.
Aggressive Decisions: Due to the volatility of the market now, one of the governance trends for the leaders is to take make faster judgments. They must progress aggressively to minimize loss of opportunity.
To view the original article in full, visit the following link: https://www.forbes.com/sites/michaelperegrine/2019/01/02/a-twist-on-top-ten-governance-trends-for-2019/#4d73656f1bd9